Publications

2017
Working Paper

Why and How Investors Use ESG Information: Evidence from a Global Survey

By: Georgios Serafeim

Using survey data from a sample of senior investment professionals from mainstream (i.e., not SRI funds) investment organizations, we provide insights into why and how investors use reported environmental, social, and governance (ESG) information. The primary reason... View Details

Keywords: Investment Management; Sustainability; ESG; ESG (Environmental, Social, Governance) Performance; Investment Fund; Investment Strategy; Corporate Accountability; Activist Shareholder; Engagement; Environment; Climate Change; Customers; Customer Satisfaction; Employee Engagement; Global Warming; Investment; Decision Making; Environmental Sustainability; Performance Expectations

SSRN

January 2025
Case

Cyber Oversight: SolarWinds Board of Directors

By: Lynn S. Paine

In 2020, just two years after its IPO, information technology company SolarWinds discovered that it was the victim of an attack on its information systems by Russian hackers. The incident, known as the Sunburst attack, was costly for the company, and certain... View Details

Keywords: Corporate Governance; Corporate Accountability; Governing and Advisory Boards; Cybersecurity; Lawsuits and Litigation; Legal Liability; Business and Shareholder Relations; Risk Management; Information Technology Industry; United States; Texas; Delaware

09 May 2017
What Do You Think?

Should Management Be Primarily Responsible to Shareholders?

maintaining a single-minded focus on profit, acting as agents for shareholders who put their capital at risk investing in their companies. It triggered an immediate controversy. Of greater importance than... View Details

Keywords: by James Heskett

June 2017
Article

Options Compensation as a Commitment Mechanism in Oligopoly Competition

By: Jun Ishii and David Hao Zhang

We analyze how CEO stock options compensation can be used as a commitment device in oligopolistic competition. We develop a two-stage model where shareholders choose managerial compensation to commit their managers to being aggressive in equilibrium. Our results may... View Details

Keywords: CEO Compensation; Ceo Risk-taking; Strategic Delegation; Stock Options; Executive Compensation

Find at Harvard

2023
Working Paper

Segmented Going-Public Markets and the Demand for SPACs

By: Angela Ma, Miles Zheng and Jessica Bai

We provide a regulatory-arbitrage-based explanation for the origin and proliferation of the Special Purpose Acquisition Company (SPAC). SPAC sponsors act as non-bank intermediaries, and the SPAC market structure appeals to yield-seeking investors and riskier,... View Details

Keywords: Special Purpose Acquisition Companies; Non-bank Intermediaries; Regulatory Arbitrage; Adverse Selection; Initial Public Offering

SSRN

01 Oct 2008
Working Paper Summaries

Responding to Public and Private Politics: Corporate Disclosure of Climate Change Strategies

Keywords: by Erin M. Reid & Michael W. Toffel

16 Feb 2023
HBS Case

ESG Activists Met the Moment at ExxonMobil, But Did They Succeed?

The impact-investment hedge fund Engine No. 1 made a big splash in May 2021 when it managed to get three nominees elected to the ExxonMobil board of directors. It was an open effort to prod the oil giant toward renewable energy and test whether activist investing could... View Details

Keywords: by Lane Lambert; Financial Services

15 Aug 2012
News

Nonprofits quantify their success

24 Nov 2003
Research & Ideas

Boards and Corporate Governance: A Balanced Scorecard Approach

Companies can create shareholder value through more effective governance, and through boards that do not simply ensure compliance, but focus their time and efforts on the most critical strategic areas. Past board results have often not... View Details

Keywords: Re: Robert S. Kaplan & Krishna G. Palepu

01 Jun 2022
What Do You Think?

Is Stakeholder Management Facing New Headwinds?

determining their influence, developing a communication management plan, and influencing stakeholders through engagement.” One difference between shareholder and stakeholder management may be in the identification of those carrying the... View Details

Keywords: by James Heskett

March 2022
Case

Shanghai Pudong Science and Technology Investment Co., Ltd.: December 2014

By: Josh Lerner, Luyang Zhang, Xinlai Tong and Yue Kong

In early December 2014, the senior team of Pudong Science and Technology Investment (hereafter, Pudong S&T) gathered in the offices of their chairman, Dr. Xudong Zhu. Before completing its cross-border acquisition of Montage Technology, Pudong S&T—wholly owned by the... View Details

Keywords: Mergers and Acquisitions; Ownership Stake; Risk Management; Ownership Type; China

September 2002 (Revised March 2003)
Technical Note

Technical Note on Equity-Linked Consideration, Part 3: Cash-and-Stock Deals

By: Carliss Y. Baldwin

The consideration paid by an acquiring company to a target can be a combination of cash and stock. During the 1980s and 1990s, for example, approximately 12% to 13% of all deals between public companies involved both cash and stock. This case series describes the basic... View Details

Keywords: Price; Acquisition; Business and Shareholder Relations

07 Nov 2007
Op-Ed

How Marketing Hype Hurt Boeing and Apple

had already bought the iPhone. The moral of the story: Do not risk marketing hype unless you are sure of both your supply curve and your demand curve. Hype can hurt stock prices and investor confidence when expectations are not met. Join... View Details

Keywords: by John Quelch; Aerospace; Consumer Products

14 Jun 2016
First Look

June 14, 2016

Behavior and Impact of Patent Trolls: A Survey By: Cohen, Lauren, Umit Gurun, and Scott Duke Kominers Abstract—We survey the empirical literature on non-practicing entity (NPE) litigation behavior and its consequences. We document both... View Details

Keywords: Sean Silverthorne

22 Feb 2024
Research & Ideas

How to Make AI 'Forget' All the Private Data It Shouldn't Have

of a recent election. Or perhaps the training data contains copyrighted data that we might not have permission to use, creating litigation risk for companies that train on that data. Just last week the New... View Details

Keywords: by Rachel Layne; Technology; Information Technology

October 2012
Case

Hill Country Snack Foods Co.

By: W. Carl Kester and Craig Stephenson

Hill Country Snack Foods, located in Austin, Texas, manufactures, markets, and distributes snack foods and frozen treats. The CEO is passionate about maximizing shareholder value and believes in keeping tight control over costs and operating the business as efficiently... View Details

Keywords: United States; Financial Strategy; Debt Management; Retail Trade; Risk Management; Food; Capital Structure; Corporate Finance; Retail Industry; Food and Beverage Industry; Texas

February 2021 (Revised June 2023)
Case

Henry Ford: Changing the World

By: Robert Simons and Max Saffer

This case traces the rise of Henry Ford from a small farm in Michigan to the controlling shareholder of the Ford Motor Company. The case describes how Ford, as young man, acquired engineering skills and the risks he took as he built and marketed one of the first... View Details

Keywords: Technology; Entrepreneurship; Personal Characteristics; Business Startups; Management; Success; Values and Beliefs; Technological Innovation; Personal Development and Career; Auto Industry; United States; Michigan

December 2017 (Revised June 2021)
Case

Tesla's Bid for SolarCity

By: Charles C.Y. Wang and Raaj Zutshi

In October 2016, Tesla asked its shareholders to ratify their $2.4 billion bid for SolarCity. Tesla had announced a series of large projects in the preceding months including the unveiling of the Model 3, the new Solar Roof, and pushing forward the opening of the... View Details

Keywords: Mergers and Acquisitions; Business and Shareholder Relations; Project Finance

July 2005 (Revised September 2020)
Case

The U.S. Current Account Deficit

By: Laura Alfaro, Rafael Di Tella, Ingrid Vogel, Renee Kim, Sarah Jeong, Matthew Johnson and Jonathan Schlefer

Investors and policymakers throughout the world were confronted with the risk of painful economic consequences arising from the large U.S. current account deficit. In 2007, the U.S. current account deficit was $731 billion, equivalent to 5.3% of GDP. The implications... View Details

Keywords: World Economy; Macroeconomics; Borrowing and Debt; Currency; Foreign Direct Investment; Business and Government Relations; United States